Download - Role of FDI’s in india’s growth
Role Of FDI’s In India’s Growth
presented by:
PRASTUT MAURYA
AMRIT DEBBARMA
SURENDRA KUMAR
CHANDRA PRAKASH GOND
presented to:Prof. RAJEEV MATHEW
Introduction of FDI
FDI is a major source of external finance which means that countries with limited
amounts of capital can receive finance beyond national borders from wealthier
Countries.
Different Types of FDI
Horizontal FDI
Vertical FDI
Platform FDI
Total FDI Inflows from 2000 to 2013Financial year(April-March) Amount of FDI inflow (in US $ million)
2000-01 2,463
2001-02 4,065
2002-03 2,705
2003-04 2,188
2004-05 3,219
2005-06 5,540
2006-07 12,492
2007-08 24,575
2008-09 31,396
2009-10 25,384
2010-11 21,383
2011-12 35,121
2012-13 22,423
Total 1,84,954
http://dipp.nic.in/fdi_statistics/india_fdi_index.htm
Top 10 FDI Contributors in IndiaRank Country Cumulative inflows (April ‘00- Sep ‘13) US $ M
1. MAURITIUS 76,292
2. SINGAPORE 21,952
3. U.K. 19,432
4. JAPAN 14,920
5. U.S.A. 11,626
6. NETHERLAND 10,025
7. CYPRUS 7,185
8. GERMANY 6,018
9. FRANCE 3,730
10. U.A.E. 2,591
http://dipp.nic.in/fdi_statistics/india_fdi_index.htm
Sector attracting Highest FDIRank Sector Cumulative inflows (April ‘00- Sep ‘13) US $ M
1. Service sector 38,562
2. Infrastructure 22,765
3. Telecommunication 12,889
4. Computer hardware & software 11,958
5. Drugs & pharmaceuticals 11,391
6. Chemicals 9,256
7. Automobile industry 9,004
8. Power 8,049
9. Metallurgical 7,747
10. Hotel & tourism 6,796
http://dipp.nic.in/fdi_statistics/india_fdi_index.htm
FDI Is Permitted From 26% To 100 % Based On The Nature And Importance Of Industry. Before Economic Reforms In India The Economic Growth Was Very Slow, But After The New Economic Policy Reforms India Is Experiencing The Economic Growth Like A Galloping Horse.
Sector FDI Entry Route
A. Agriculture 1. Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisciculture, Aquaculture, Cultivation of vegetables & mushrooms and services related to agro and allied sectors 2. Tea sector, including plantation (FDI is not allowed in any other agricultural sector /activity)
100%
100%
Automatic
FIPB
B. Industry 1. Mining covering exploration and mining of diamond & precious stones; Gold, silver and minerals. 2. Coal and lignite mining for captive consumption by power projects and iron & steel, cement production. 3. Mining and mineral separation of titanium bearing minerals
100% 100% 100%
Automatic Automatic FIPB
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Sector FDI Entry Route
C. Manufacturing 1. Alcohol-Distillation & Brewing 2. Coffee & Rubber processing & Warehousing 3. Defence production 4. Hazardous chemicals and isocyanates 5. Industrial explosives -Manufacture 6. Drugs and Pharmaceuticals 7. Power including generation (except Atomic energy); transmission, distribution and power trading. (FDI is not permitted for generation, transmission & distribution of electricity produced in atomic power plant/atomic energy since private investment in this activity is prohibited and reserved for public sector.)
100% 100% 26% 100% 100% 100% 100%
Automatic Automatic FIPB Automatic Automatic Automatic Automatic
D. Services 1. Civil aviation (Greenfield projects and Existing projects) 2. Asset Reconstruction companies
49% 49%
Automatic FIPB
www.irjcjournals.org
Sector FDI Entry Route
3. Banking (private) sector
4. NBFCs: underwriting, portfolio management services, investment advisory services, financial consultancy, stock broking, asset management, venture capital, custodian, factoring, leasing and finance, housing finance, forex broking etc. 5. Broadcasting a. FM Radio b. Cable network; c. Direct to home; d. Hardware facilities such as up-linking, HUB. e. Up-linking a news and current affairs TV Channel 6. Commodity Exchanges 7. Insurance 8. Petroleum and natural gas a. Refining 9. Print Media a. Publishing of newspaper and periodicals dealing with news and current affairs b. Publishing of scientific magazines / speciality journals/periodicals 10. Telecommunications Basic and cellular, unified access services, national /international long-distance, V-SAT, public mobile radio trunked services (PMRTS), global mobile personal communication services (GMPCS) and others.
74% (FDI+FII). FII not to exceed49% 100%
20% 49% (FDI+FII) 49%
49% (FDI+FII) (FDI 49% FII 23%) 49% (PSUs).
100% (Pvt. Companies) 26%
100%
Automatic
Automatic
FIPB
FIPB
Automatic
FIPB (for PSUs). Automatic (Pvt.) FIPB FIPB Automatic up to 49% and FIPB beyond 49%.
www.irjcjournals.org
Top 10 FDI Cities in India1. Bangalore
2. Delhi
3. Pune
4. Mumbai
5. Chennai
6. Hyderabad
7. Kolkata
8. Ahmedabad
9. Nagpur
10.Jaipur
India Has Continually Attracted FDI From The World’s Major Investors. In 1998 And 1999, The Indian National Government Announced A Number Of Reforms Designed To Encourage And Promote A Favorable Business Environment For Investors.
INDIAN SCENARIO
Foreign Direct Investment (FDI) is permitted as under the following forms of investments.
1. Through financial collaborations.
2. Through joint ventures and technical collaborations.
3. Through capital markets via Euro issues.
4. Through private placements or preferential allotments.
Forbidden Territories:
FDI is not permitted in the following industrial sectors:
5. Arms and ammunition.
6. Atomic Energy.
7. Railway Transport.
8. Coal and lignite.
9. Mining of iron, manganese, chrome, gypsum, sulphur, gold, diamonds, copper, zinc.
http://www.mairec.org
Advantages Of FDI Growth in Economy
Job opportunity
Good Infrastructure
Competition
Availability of new technology
Increase in saving & investment
Contribution to exports
Disadvantages Of FDI Effect of local culture
Effect of natural environment
Threaten small scale industry
Exploitation of resources
Technology
BIBLIOGRAPHY
http://www.mairec.org
http://dipp.nic.in/fdi_statistics/india_fdi_index.htm
www.irjcjournals.org
www.fdi.gov.in
http://www.vccircle.com/500/news/india-fdi-inflow-dips-25-in-11-months-of-2010- 2013
http://en.wikipedia.org/wiki/Foreign_direct_investment
http://www.legalindia.in/foreign-direct-investment-in-indian-retail-sector- %E2%80%93-an-analysis
http://businesstoday.intoday.in/story/fdi-in-retail/1/20408.html